In our opinion, the control panels you are installing that include a microprocessor are considered “qualified technological equipment” as defined in Internal Revenue Code Section 168(i)(2). Therefore, these panels should be depreciated using the Modified Accelerated Cost Recovery System (MACRS) method over a life of five years.
Those panels that do not include a microprocessor are also eligible for depreciation over a life of five years. A recent Tax Court ruling determined that part of the cost of primary and secondary electrical systems that carry the electrical load to a company’s equipment is Section 1245 personal property and not structural components. Therefore, these assets are eligible for a shorter life.
Elliot & Warren | Certified Public Accountants
We have enjoyed our working relationship with CPI, with their “whatever it takes attitude” and look forward to a continuing partnership.
We highly recommend Carolina Products and have found the quality to be top notch.
Project Manager/Design Engineer
Austin Electric, Inc.
Almost all national chains have some sort of intergraded electrical system… I would and do recommend CPI to every customer.
Bronco Electric LLC
The first full month’s energy billing was about 500 dollars lower than expected. I plan to use CPI systems similar to our office at any new store building projects.
Robinson Oil Corporation